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Regulators in the Middle East must come together and coordinate on regulatory changes if the countries in the Gulf are to benefit from domestic and foreign fund manager participation, according to fund managers operating in the region.

At a roundtable coordinated by strategic research consultancy Insight Discovery, fund managers discussed the savings and investments industry among Gulf Cooperation Countries.

Although some progress is being made in the countries, regional regulations must be addressed before international investment can really take off, fund managers said.

They believe opportunities exist for international asset managers to work with the various regulatory bodies to develop a robust regulatory framework for these markets.

Peter Duke, sales director at Fidelity Worldwide Investment, said: “Greater coordination in regulation is essential. That includes coordination between the onshore and offshore regulators here in the UAE. In general, though, there should be much more transparency for the consumer.”

Reza Yazdi, head of sales at Morningstar Dubai, said: “I have a wish list with three items. First, I would like to see a regulatory environment that is much less fragmented. Second, I want to see intermediaries that have greater understanding of the particular needs of the consumers to whom they are distributing products. Third, I desire a greater variety of funds and other products, so that it is easier for the consumers to find solutions that are truly appropriate for them.”

Participants at the roundtable said there was also a lack of understanding of available products, as well as low levels of trust in financial advisers among consumers in the markets.

Arwa Hamdieh, co-founder of Financial Services Association in the United Arab Emirates, said: “The lack of familiarity with the financial services industry is preventing GCC consumers from utilising advisory services for their financial planning.

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“The problem has been compounded by the reactiveness of the financial services companies themselves. They have not done enough to promote consumer understanding and to develop really compelling product offerings."